Podcast
Questions and Answers
Which of these relate to the strategic role of operations management? (Select all that apply)
Which of these relate to the strategic role of operations management? (Select all that apply)
- Marketing
- Differentiation (correct)
- Finance
- Inventory (correct)
- Cost Leadership (correct)
- Quality (correct)
- Standardisation (correct)
What is a business that uses the cost leadership strategy aiming to achieve?
What is a business that uses the cost leadership strategy aiming to achieve?
The lowest cost or be the most price-competitive in the market.
What is the main goal of differentiation strategy?
What is the main goal of differentiation strategy?
Distinguishing products (goods or services) in some way from its competitors.
What is standardisation in business?
What is standardisation in business?
Which of these is NOT a key business function (KBF)?
Which of these is NOT a key business function (KBF)?
Interdependence refers to when each KBF is committed to the same business goals as the others and they work together to achieve those goals.
Interdependence refers to when each KBF is committed to the same business goals as the others and they work together to achieve those goals.
The fast-food industry typically customises its services, aiming to cater to unique customer preferences.
The fast-food industry typically customises its services, aiming to cater to unique customer preferences.
What are perishable goods?
What are perishable goods?
What are the two main strategies that operations can use to achieve a strategic role?
What are the two main strategies that operations can use to achieve a strategic role?
How can operations achieve cost leadership through economies of scale?
How can operations achieve cost leadership through economies of scale?
Flashcards
Cost Leadership
Cost Leadership
A business strategy focusing on the lowest cost or most competitive pricing in the market.
Differentiation
Differentiation
A strategy of distinguishing products from competitors, creating unique value.
Economies of Scale
Economies of Scale
Cost advantages from increased business size, often achieved through bulk buying or standardization.
Standardization
Standardization
Signup and view all the flashcards
Strategic Role of Operations
Strategic Role of Operations
Signup and view all the flashcards
Operations Management
Operations Management
Signup and view all the flashcards
Key Business Functions (KBFs)
Key Business Functions (KBFs)
Signup and view all the flashcards
Interdependence
Interdependence
Signup and view all the flashcards
Perishable Goods
Perishable Goods
Signup and view all the flashcards
Non-Perishable Goods
Non-Perishable Goods
Signup and view all the flashcards
Customised Goods
Customised Goods
Signup and view all the flashcards
Standardised Goods
Standardised Goods
Signup and view all the flashcards
Goods
Goods
Signup and view all the flashcards
Services
Services
Signup and view all the flashcards
Marketing
Marketing
Signup and view all the flashcards
Finance
Finance
Signup and view all the flashcards
Human Resources
Human Resources
Signup and view all the flashcards
Study Notes
Year 12 Business Studies
- Topics covered include Operations, Finance, Marketing, and Human Resources, each accounting for 25% of the course.
- Assessment includes multiple-choice questions (5 marks), short answer questions (10 marks), and business reports based on case studies.
- Students should use case studies of global businesses (e.g., McDonald's, Qantas, Apple) to understand key business functions' roles, influences, processes, and strategies.
HSC Business Studies: Four Topics
- Operations: Input-output processes, turning inputs into outputs using the production process.
- Finance: Provides, monitors, and controls financial resources for all business areas.
- Marketing: Determines customer needs, creates products, identifies target markets, and implements marketing strategies to increase profit and market share (using the 4Ps + 3Ps).
- Human Resources: Manages the relationship between employees and employers, aiming to achieve the business's goals.
Role of Operations Management (DP1-DP3)
- DP1: Strategic role of operations management – cost leadership, good/service differentiation. Kia focuses on cost leadership, Rolls Royce on differentiation.
- DP2: Goods and/or services in different industries. Focus on differences of standardised and customised goods, perishable and non-perishable goods.
- DP3: Interdependence with other key business functions (KBF's). Operations depends on other functions like finance, marketing, and HR.
Achieving Cost Leadership via Economies of Scale
- Businesses achieve cost leadership by buying inputs in bulk, using advanced technology, and standardising production (often on assembly lines).
- Economies of scale reduce per-unit costs due to increased scale of operations. Successful examples include McDonald's and Qantas.
Product Differentiation
- Operations can differentiate goods by features, quality, colour, augmented features.
- Services can be differentiated by time spent on service, expertise level, and qualifications/experience of service provider.
- Qantas uses differentiating factors such as wellness space in economy, mini-boutique hotel rooms in first class, and customisable cabin lighting.
Customised Goods
- Varied goods based on customer needs, exemplified by Subway sandwiches and McDonald's customizable burgers. Complexity of processes increases with customisation.
Standardised Goods
- Mass-produced, uniform in quality, meeting predetermined standards. Economies of scale are achieved. (e.g., McDonald's fries, nuggets, Toyota cars)
Perishable Goods
- Short shelf life (food, vitamins, medicines). Operations focus on quality, safety, cleanliness, short lead times, and fast distribution; robust packaging, and cold storage. Exemplified by McDonald's meat patties (bone fragments and metal scanning).
Non-Perishable Goods
- Durable (vehicles, clothes, appliances). Focus is on quality management (avoiding product recalls and safety issues), inventory management, and preventing products from becoming outdated. This includes technology and clothing.
Services in Different Industries
- Services can be standardized (fast food) or customized (accounting, medical). Standardized services typically use a cost leadership strategy.
Interdependence
- Mutual reliance between four key business functions (KBFs) to meet shared goals.
- Operations, marketing, finance, and human resources all depend on each other to function effectively.
- Example interplay: Marketing needs operations to produce goods/services as specified; Operations needs marketing to design and forecast needed production.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
